Jadestone Energy: No Clear Date for Montara FPSO Output Restart
Asia Pacific-focused oil and gas company Jadestone Energy has yet to restart production from its Montara Venture FPSO, off Australia, following a shutdown in August. The company said Monday it was "not in a position to provide guidance on a possible Montara production restart date."
The company shut down the FPSO off W. Australia in August to allow for repairs on a tank that leaked oil back in June through a 30-millimeter crack.
Announcing the shutdown in August, Jadestone said that, while preparing for the repair, it found a defect in water ballast tank 4S, which will also be included in the workscope of repairs, and that it would need to shut production from the FPSO again.
"...Jadestone has been progressing a remediation plan for the FPSO’s hull and tanks and regularly updating the National Offshore Petroleum Safety and Environmental Management Authority (“NOPSEMA”) on these activities. This plan aims to deliver operational readiness to ensure a safe and reliable restart of the FPSO," the company said Monday.
"Earlier today, NOPSEMA issued a general direction to the Company, which requires that Jadestone engages an independent reviewer to undertake a gap recognition review, and assure Jadestone’s remediation plans and operational readiness prior to the restart of production operations," Jadestone Energy added.
The independent reviewer’s report will be considered by NOPSEMA prior to the restart of production through the FPSO.
"The Company will provide a further update on its Montara FPSO remediation plans at its half-year 2022 results scheduled for 20 September 2022. At this stage, the Company is not in a position to provide guidance on a possible Montara production restart date," Jadestone Energy said.
"As a result, the company expects that 2022 production could average approximately 13,000 boe/d if production were restored in line with previous guidance, or closer to an average of approximately 11,000 boe/d if the restart were towards the end of 2022," Jadestone Energy said.
Paul Blakeley, President and CEO said: “We have shut-in production at Montara to focus exclusively on a remediation plan, and have accelerated the inspection and repair activity through prioritizing additional maintenance crew offshore.
"In addition, plans to increase longer-term accommodation space on the FPSO are underway. This will deliver a high level of confidence to all stakeholders in the structural integrity of the Montara FPSO, and allow for a safe and reliable restart of production.
"Going forward, we will be reviewing the way we approach inspection and repair on the FPSO’s hull and tanks, with a firm intention to prevent similar occurrences of unplanned downtime in the future. We have made significant progress in restoring the FPSO to the standard which we expect while improving its reliability. We are looking forward to safely delivering the remediation plan, resuming production, and restoring confidence in Montara, further adding to the considerable value we have already delivered from the asset since acquisition.”